- Pakistan paying premium, attracting majority of shredded cargoes
- Ship recycling slowdown reducing secondary scrap generation
Pakistan’s imported scrap market sentiment has turned cautious, with trading activity slowing ahead of the Eid holidays following a strong buying phase in recent weeks, particularly for UK/EU-origin cargoes. Market participants noted that sentiment has gradually weakened during Ramadan, with daily price fluctuations of $5-10/t driven by ongoing geopolitical developments.
EU-origin shredded scrap was assessed at $408/t CFR Qasim on 17 March 2026, inching up by $1/t w-o-w.
As per market insiders, freight costs have also surged over the past week, with 20-ft container rates rising from around $1,400 to $2,100, significantly increasing landed scrap costs and adding further pressure to the market. Imported shredded scrap offers were heard at $410-420/t CFR Qasim (EU/UK origin), though buying interest has slowed.
Market comments
A major trading house representative reported that EU origin scrap volumes are increasingly shifting toward Pakistan, where price realisations remain stronger, while India remains less competitive due to relatively better availability of domestic scrap and lower bid levels.
Currently, some buyers are still indicating interest at around $400-405/t CFR Qasim, but offers are scarce, reflecting cautious sentiment on both sides. Suppliers are also not aggressive in pushing sales, while buyers are expected to remain inactive amid the upcoming Eid holidays, likely keeping the market quiet over the next 7-10 days.
A Karachi-based steel mill representative noted that rebar indicatives are currently at PKR 240,000-245,000/t ($858-876/t), with scrap at PKR 140,000-145,000/t ($501-519/t), bala at PKR 190,000-192,000/t ($679-687/t), and CC billet levels around PKR 202,000-207,000/t ($722-740/t).
The source highlighted that market sentiment remains cautious ahead of Eid, with buyers expected to stay slow and selective in the near term. According to the source, suppliers are increasingly exploring alternative destinations such as India and Bangladesh, while some trading houses in India and the Middle East have offered discounted shredded cargoes to clear positions.
He added that for India there has been limited trading activity over the past 1-2 weeks, particularly at $390-400/t levels amid resistance from buyers, where bids remain lower at $372-376/t CFR despite rising freight and bunker costs.
Pakistan’s ship recycling market remained quiet, with no vessel deals reported as units shifted to Bangladesh on higher pricing.
Domestic fundamentals stayed supportive, with plate prices rising to around $599/t, the highest in the region, supporting recycler margins. Disruptions to Iranian scrap inflows are also expected to keep local steel prices firm in the near term.
Outlook
The market is likely to stay quiet over the next 10-12 days, as Eid holidays slow down activity. With buyers largely on the sidelines and suppliers also taking a cautious stance, ongoing freight volatility and geopolitical uncertainty are expected to keep sentiment subdued in the coming week.
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